1. Average unit volume means the 2019 average “Gross Sales” (as that term is defined in our FDD) for our 22 company- and affiliate-owned Jeremiah’s Italian Ice Shops that were open for all of 2019. During 2019, 10 of those 22 Jeremiah’s Italian Ice Shops (45%) had gross sales that equaled or exceeded that average. The median Gross Sales for the 22 Jeremiah’s Italian Ice Shops in 2019 was $589,397. Our FDD contains additional information about the Gross Sales of the 22 Jeremiah’s Italian Ice Shops during the first quarter of 2020, which reflected a drop in volume due to the global pandemic. Please refer to Item 19 of our FDD for all of the relevant details.

2. Average gross profit means the 2019 average Gross Sales of our 22 Jeremiah’s Italian Ice Shops minus the average “Food and Paper Costs” and “Labor Costs” (as those terms are defined in the FDD), but not including occupancy. During 2019, 10 of the 22 Jeremiah’s Italian Ice Shops (45%) had gross profits that equaled or exceeded the average. The median gross profit for the 22 Jeremiah’s Italian Ice Shops in 2019 was $291,715. This figure does not account for additional costs that franchisees incur, such as ongoing royalties and marketing fees (added in, the average gross profit would be 43.2%). Please refer to Item 19 of our FDD for all of the relevant details.

3. Average return on investment is calculated as the average gross sales for 2019 (noted above) divided by high and low investment for a new in-line or stand-alone Jeremiah’s Italian Ice Shop (taken from Item 7 of our May 11, 2020 FDD). The median ROI for 2019 was 1.15 to 2.40.

A new franchisee’s results may differ from the represented performance. There is no assurance that you will do as well.

This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Franchise offerings are only made through our Franchise Disclosure Document and compliance with applicable federal and state disclosure laws.